Walmart delivery drivers in Pa. to receive $1.4 million as part of multi-state settlement over withheld tips and other fees

Walmart Spark Program Delivery drivers in Pennsylvania will receive about $1.4 million as part of a multistate settlement in which the retail giant was accused of pocketing a portion of tips and other payments meant for drivers.

Pennsylvania’s share is part a larger $100 million settlement from the complaint brought by the Federal Trade Commission and 11 states, according to a news release from the Pennsylvania Attorney General’s office.

Of that total, $79 million will go to drivers, $11 million will go to states, and $10 million will be paid to the FTC to provide refunds to customers.

Walmart allegedly deceived both customers and delivery drivers, leading them to believe that drivers would get the entire tip customers left for them when, in fact, Walmart was retaining a portion and in some cases the entire tip.

Tips were only one payment the drivers were misled about, the lawsuit alleged. Drivers were also shortchanged on pre-tip amounts, base pays, and incentive pays that were inaccurately advertised to them, according to the suit.

“Walmart was aware almost immediately of issues with the program, and drivers being paid less than face value, yet did nothing to remedy the situation,” Pennsylvania Attorney General David Sunday said in a statement. “Time and time again, Spark drivers did not receive tips they were entitled to — this settlement goes a long way to making those harmed Pennsylvanians whole.”

In response to the settlement, Walmart said that it was working to improve procedures and ensure fairness and transparency with drivers and that it was issuing payments to impacted drivers. When asked whether those were the payments legally mandated by the settlement, a Walmart spokesperson said they were.

“We value the hard work and dedication of the drivers who deliver great service and products to our customers,” the spokesperson said in a statement.

The Spark program started in 2018 and enrolled nearly one million drivers across the country who collectively made more than 272 million deliveries, according to the Attorney General’s release.

Walmart now will be required to operate an earnings-verification program and submit annual reports to the FTC for the next 10 years. The company is not allowed to modify orders after drivers have accepted them nor misrepresent how much a driver will earn from an offer.